![]() It's also possible to claim a bad-debt deduction if someone doesn't pay you for work you performed or products you sold. Loss-You must have sustained a loss because of the debt.Worthlessness-You must prove that the debt is uncollectible and that you attempted to collect it.Without written documentation of the loan, the IRS may treat the advance as a contribution of capital to the business and it will not be deductible. ![]() This is particularly important if you lend your corporation money. The best way to establish this relationship is with a written document stating the amount of the loan, interest rate, repayment schedule, etc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |